So-called cryptocurrencies are on the rise. At least those who are more familiar with the stock market or with stock prices or who are trading on the internet have already recognized this. It can be assumed that the cryptocurrencies will one day make traditional banks and financial institutions superfluous.
There are now over 3,000 more or less successful cryptocurrencies. The most successful is the Bitcoin, but already some competitors such as the Ethereum or even on the rise of Chinese Neo are on the heels. One of the strongest competitors of Bitcoin, however, is the Litecoin. The Litecoin is a peer-to-peer currency that is embedded in an open source software project. The Litecoin system was released in 2011 by a certain Charlie Lee via an MIT license. A current version is available since January 2017.
Cryptocurrency Litecoin - the number 1 bitcoin hunter
The system of the Litecoin is in many ways identical to that of the Bitcoin. Creation and transmission of both crypto currencies is not centrally, but via an open encryption protocol. All expenses, transactions and balance sheets are managed through the peer-to-peer network. This means that the communication takes place among peer participants in the computer network who can both use and use litecoins.
The Internet currency can thus be sent worldwide by any participant to any other participant almost free of charge and in real time. The network is secured by mathematical calculations. Anyone involved can freely decide on their financial transactions without any central administration being able to influence. The Litecoin has - and this is one of its key advantages - a particularly fast transaction time and a very high storage efficiency.
An Internet currency with high trading volume
Litecoins are created using a special hash function that is cryptographically encrypted. Finding a hash is called mining. When generating the Litecoins a geometric series is formed. This series halves automatically every four years until a predetermined volume of litecoins is reached.
This protects this cryptocurrency from inflation. Like the Bitcoin, the Litecoin can be generated on one computer or even on several that belong to a system. The generation takes place in so-called pools. A Litecoin can be divided into 100,000,000 units. In addition, the exchange in bitcoin or fiat money is possible, which takes place via online exchanges. The Litecoin, which was developed as an alternative to Bitcoin, is supported by trade and commerce, is liquid and has a high trading volume.
The differences between Bitcoin and Litecoin
As similar as the systems of Bitcoin and Litecoin are, there are some, not insignificant differences. Already mentioned was the particularly fast transaction time of Litecoin. The blocks in which the Litecoin is generated are generated every 2.5 minutes instead of 10. It follows that the network of the Litecoin produces four times more units than the network of Bitcoin.
In contrast to Bitcoin, Litecoin also uses a different, specially developed sequential function called scrypt. This way, mining can be spread more evenly among many people, while Bitcoin has some centralization. The Litecoin algorithm is specially tailored for PCs. Special functions also prevent the mining from being dependent on the financial strength of the participants. So-called brute-force attacks are also successfully prevented or at least hindered by scrypt.
Litecoins - a cryptocurrency with a future
The memory needed to mine litecoins is relatively expensive, but it can be worth the investment. After a brief drop in value, which also affected the Bitcoin, since the beginning of 2017, a strong up trend is again recorded at Litecoins. In June 2017, Litecoin was the world's sixth largest cryptocurrency with a market value of $ 1.5 billion.
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